Government to subsidize LRT fares for 12 years

LRT - JAKARTA. Transportation Minister Budi Karya Sumadi has said that the government will subsidize passenger fares on the light rail transit (LRT) commuter service for 12 years, so the new public transportation will be affordable to all commuters in Greater Jakarta.

The government will allocate about Rp 14 trillion (US$980 million) toward the LRT fare subsidy so ticket prices would be set at Rp 12,000, the minister said in Jakarta on Tuesday, according to the kompas.com report. He added that the unsubsidized fare tickets would be at about Rp 24,000.

“So we will be providing a subsidy of about 50 percent, or about Rp Rp 1.2 trillion in one year,” Budi said. After 12 years, LRT passengers would have to pay the normal fare.

On Tuesday, the Transportation Ministry signed an agreement with state-owned railway operator PT Kereta Api Indonesia (KAI) to grant a 50-year concession to KAI for managing the LRT, which is still under construction.

Under the agreement, KAI is responsible for the operation and maintenance of the LRT system, as well as managing the LRT's business assets.

The ministry's  director general of railways, Zulfikri, said that total investment in the Greater Jakarta LRT was Rp 29.9 trillion.

Two LRT projects are being developed in Jakarta. The first, the Greater Jakarta LRT, will depart from Bogor and travel through Bekasi, Cawang and Kuningan to terminate at Sudirman Station. The second, Jakarta LRT will depart from Kelapa Gading through Rawamangun and Manggarai to also terminate at Sudirman Station.